Accouitng treatment of appreciation in shares held as stock
This query is : Resolved
01 August 2010
I am a dealer in stock.(Holding Shares as stock in trade)
I have 100 shares of company A
I have 200 shares of company B
NOw both company A and B gets amalgamated and formed a new company C
I was alloted 200 shares of new company C
I was holding Company A and B shares as closing stock, now what is the accounting treatment of new alloted shares of C and old shares of Company A and B
I have 100 shares of company A
I have 200 shares of company B
NOw both company A and B gets amalgamated and formed a new company C
I was alloted 200 shares of new company C
I was holding Company A and B shares as closing stock, now what is the accounting treatment of new alloted shares of C and old shares of Company A and B
01 August 2010
Only cost of shares in company A and company B would be the cost of shares in company C.
There would be no change in valuation.
There would be no change in valuation.
01 August 2010
Generally the Stock is Valued at Cost or Net Realisable Value which ever is Lower(AS-2). Hence you have to value the stock at cost price only as the market value is more than the cost price
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- Fixe term employment
- Is any professional CA is here please reply
- GST ITC REVERSE
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Putting a heading on received mail
- Section 50-fixed asset-->building ceases to exist
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Regarding Applicability of Tax Audit u/s 44AB
- Reprocessing of rectification order AY 2025-26
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
